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      Trump Administration Looks to Take Steps to Ease Pain From Car Tariffs

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      The planned concessions to give automakers more time to relocate production to the United States would still leave substantial tariffs on imported cars and car parts.The Trump administration said it plans to announce measures as early as Tuesday to ease the impact of tariffs on imported cars and car parts to give automakers more time to relocate production to the United States.Tariffs of 25 percent on imported vehicles and on auto parts will remain in place. But the tariffs will be modified so that they are not “stacked” with other tariffs, for example on steel and aluminum, a White House spokesman said. Automakers will not have to pay tariffs on those metals, widely used in automobiles, on top of the tariffs on cars and parts.In addition, automakers will be reimbursed for some of the cost of tariffs on imported components. The reimbursement will amount to up to 3.75 percent of the value of a new car in the first year, but will be phased out over two years, the spokesman confirmed.A 25 percent tariff on imported cars took effect April 3. On Saturday, the tariffs are set to be extended to include imported parts.“President Trump is building an important partnership with both the domestic automakers and our great American workers,” Howard Lutnick, the commerce secretary, said in a statement. “This deal is a major victory for the president’s trade policy by rewarding companies who manufacture domestically, while providing runway to manufacturers who have expressed their commitment to invest in America and expand their domestic manufacturing.”But even with these changes, there will still be substantial tariffs on imported cars and auto parts, which will raise prices for new and used cars by thousands of dollars and increase the cost of repairs and insurance premiums.The modification to the tariffs was reported earlier by The Wall Street Journal. Mr. Lutnick helped automakers secure a major exemption from tariffs in March and has taken on a role advocating relief for some industries hit by the levies.Automakers welcomed the change. “We believe the president’s leadership is helping level the playing field for companies like G.M. and allowing us to invest even more in the U.S. economy,” Mary T. Barra, the chief executive of General Motors, said in a statement on Monday. “We appreciate the productive conversations with the president and his administration and look forward to continuing to work together.” More

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      Mexico to Give U.S. More Water From Their Shared Rivers

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      A joint agreement appeared to avert a threat by President Trump of tariffs and sanctions in a long-running dispute over water rights in the border region.Mexico has agreed to send water to the United States and temporarily channel more water to the country from their shared rivers, a concession that appeared to defuse a diplomatic crisis sparked by yearslong shortages that left Mexico behind on its treaty-bound contribution of water from the borderlands.Earlier this month, President Trump threatened additional tariffs and other sanctions against Mexico over the water debt, amounting to about 420 billion gallons. In a social media post, Mr. Trump accused Mexico of “stealing” water from Texas farmers by not meeting its obligations under a 1944 treaty that mediates the distribution of water from three rivers the two countries share: the Rio Grande, the Colorado and the Tijuana. In an agreement announced jointly by Mexico and the United States on Monday, Mexico will immediately transfer some of its water reserves and will give the country a larger share of the flow of water from the Rio Grande through October.The concession from Mexico averted the threat of more punishing tariffs and diplomatic enmity with the United States amid the rollout of Mr. Trump’s new trade policies. But fulfilling the agreement is expected to significantly strain Mexico’s farmlands and could revive civil unrest triggered by previous water payments to the United States. Much of the Mexican borderlands are enduring extreme drought conditions, according to Mexico’s meteorological agency and water commission, and Mexico’s water reserves are at historic lows.Mexico’s president, Claudia Sheinbaum, has taken a conciliatory approach in negotiations with the Trump administration. Hours after Mr. Trump’s threat of tariffs over the water dispute earlier this month, Ms. Sheinbaum acknowledged that her country had fallen short of its treaty commitments, citing the extreme drought and saying that Mexico had been complying “to the extent of water availability.”In a statement on Monday, the State Department lauded Ms. Sheinbaum “for her personal involvement” in negotiating the agreement, and spoke of “water scarcity affecting communities on both sides of the border.” A statement from the Mexican foreign ministry on the agreement noted that the United States had agreed not to seek a renegotiation of the 1944 water treaty.Longstanding tensions over water have simmered between Mexico and the United States. In 2020, those tensions exploded into violence in Mexico, as farmers rioted and seized control of a dam in the border region in an effort to shut off water deliveries to the United States.Rising temperatures and drought have made the water from rivers Mexico and the United States share all the more valuable.According to data provided by the International Boundary and Water Commission, which mediates water disputes between the two countries, Mexico has fallen well short of its treaty commitments on water delivery in the last five years. Between October 2020 and October 2024, Mexico provided just over 400,000 acre-feet of water, far less than the roughly 1.4 million acre-feet called for under treaty stipulations. The debt has only grown since.Emiliano Rodríguez Mega More

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      Canada’s Political Landscape Upended by Trump, Trudeau and Tariffs

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      After nearly a decade in power, the Liberal Party seemed destined to be swept out on a wave of anti-incumbency sentiment. Then events took a surprising turn.Until January, polls suggested that the Conservative Party would handily regain power from the Liberals in any Canadian election held this year.Two things overturned that expectation: the resignation of Justin Trudeau as prime minister and President Trump’s trade war with Canada, along with his threat to annex the country and make it the 51st state by sowing economic chaos.Trump’s Trade WarWhile Mr. Trump pulled back from his initial threat of tariffs on everything imported from Canada, he has imposed several measures that hit key sectors of Canada’s economy: a 25 percent tariff on automobiles, aluminum and steel, and a similar one on Canadian exports that do not qualify as North American goods under the United States-Mexico-Canada Agreement, which he signed during his first term in office. An auto parts tariff of 25 percent is scheduled to take effect on Saturday. Last week, Mr. Trump suggested that the automobile tariffs, which are reduced based on their U.S.-made content, could be increased. He offered no specifics.Autos and auto parts are Canada’s largest exports to the United States, outside oil and gas. Canada Hits BackUnder Mr. Trudeau, Canada placed retaliatory tariffs on U.S. goods coming into Canada that are expected to generate 30 billion Canadian dollars, about $22 billion, in revenue over a year.After becoming prime minister in March, Mark Carney imposed an additional 8 billion Canadian dollars, about $5.7 billion, in tariffs, including a 25 percent levy on autos made in the United States — but not on auto parts. Automakers with assembly lines in Canada will still largely be able to bring in American-made cars of those brands duty free.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Uncertainty Over Trump’s Tariffs Paralyzes U.S. Businesses

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      Three months ago, things were looking pretty good for Tim Fulton and Ramper Innovations, a manufacturer of airplane equipment based in Sitka, Alaska.Mr. Fulton was spending his days inside his workshop doing what he loved: building the company’s main product — a fold-up conveyor belt that unfurls in the belly of a plane to load and unload cargo or luggage. He had an order from the U.S. Air Force that he was confident would serve as a catalyst and bring in new customers from Asia and the Middle East while luring potential investors.Then, the tariffs from President Trump struck.The New York Times heard from Mr. Fulton and hundreds of other American business owners who said they have been stunned into paralysis by Mr. Trump’s barrage of tariffs. They are reassessing their product lines and supply chains and even putting their operations on hold.Mr. Fulton, 66, was floored at the size of the tariffs and how quickly and chaotically they were applied. There were tariffs on Mexico and Canada and steel and aluminum. Mr. Trump hit dozens of countries with higher “reciprocal” tariffs he then put on hold when financial markets crashed. China struck back and the import tariff on Chinese goods ratcheted up to 145 percent.Even though Ramper makes its products in the United States and buys as much of its components as possible from American companies, there is no getting around the tariffs. Some essential parts, such as motorized and static rollers from Japan, are only available overseas. The raw materials needed to build other critical parts are also imported. Most of Ramper’s U.S. suppliers rely on imports for some part of their supply chain.Ramper raised its price 17 percent — a ballpark estimate for how much the tariffs would inflate its costs. Mr. Fulton also warned prospective customers that he may need to increase his price further if tariffs pushed his costs up by more than 5 percent. Prospective customers balked at the higher prices and the uncertainty of what the final price might be.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      China Rejects Trump Claim of Tariff Talks With Xi

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      President Trump said “we’re meeting with China” on tariffs, comments aimed at soothing jittery financial markets. But Chinese officials say no talks have taken place.President Trump, whose trade war with China has rattled financial markets and threatened to disrupt huge swaths of trade, suggested on Friday that he has been in touch with Xi Jinping, China’s president, even as officials in China insist that no negotiations are occurring.In an interview with Time, Mr. Trump said Mr. Xi had called him and asserted that his team was in active talks with the Chinese on a trade deal. Speaking to reporters outside the White House on Friday morning, the president reiterated that he had spoken with the Chinese president “numerous times,” but he refused to answer when pressed on whether any call had happened after he imposed the tariffs earlier this month.Mr. Trump’s comments appeared aimed at creating the impression of progress with China to soothe jittery financial markets, which have fallen amid signs that the world’s largest economies are not negotiating. The S&P 500 is down 10 percent since Mr. Trump’s Jan. 20 inauguration.But his claims of talks have been rejected by Chinese officials, who have repeatedly denied this week that they are actively negotiating with the United States.“China and the U.S. have not held consultations or negotiations on the issue of tariffs,” Guo Jiakun, the spokesman for the foreign ministry, said in a news conference on Friday. “The United States should not confuse the public.”On Thursday, He Yadong, a spokesman for China’s commerce ministry, had said that there were “no economic and trade negotiations between China and the United States.”“Any claims about progress in China-U.S. economic and trade negotiations are baseless rumors without factual evidence,” he said.Asked in the Time interview if he would call Mr. Xi if the Chinese leader did not call first, Mr. Trump said no.“We’re meeting with China. We’re doing fine with everybody,” the president said.Mr. Trump also said, without evidence, that he had “made 200 deals.” He added that he would finish and announce them in the next three to four weeks.With the two governments at an impasse, businesses that rely on sourcing products from China — varying from hardware stores to toymakers — have been thrown into turmoil. The triple-digit tariff rates have forced many to halt shipments entirely.Trump officials have argued that the status quo with China on trade is not sustainable. Mr. Trump has rapidly ratcheted up tariffs on Chinese products, from 54 percent on April 2 to 145 percent just one week later. The Chinese government has argued that the actions are unfair and closely matched his moves, raising its tariffs on American goods to 125 percent. More

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      12 States Sue Trump Over His Tariffs

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      A dozen states, most of them led by Democrats, sued President Trump over his tariffs on Wednesday, arguing that he has no power to “arbitrarily impose tariffs as he has done here.”Contending that only Congress has the power to legislate tariffs, the states are asking the court to block the Trump administration from enforcing what they said were unlawful tariffs.“These edicts reflect a national trade policy that now hinges on the president’s whims rather than the sound exercise of his lawful authority,” said the lawsuit, filed by the states’ attorneys general in the U.S. Court of International Trade.The states, including New York, Illinois and Oregon, are the latest parties to take the Trump administration to court over the tariffs. Their case comes after California filed its own lawsuit last week, in which Gov. Gavin Newsom and the state attorney general accused the administration of escalating a trade war that has caused “immediate and irreparable harm” to that state’s economy.Officials and businesses from Oregon, the lead plaintiff in the suit filed Wednesday, have also expressed concerns about the vulnerability of the state’s trade-dependent economy, as well as its sportswear industry, as a result of the tariffs.“When a president pushes an unlawful policy that drives up prices at the grocery store and spikes utility bills, we don’t have the luxury of standing by,” said Dan Rayfield, Oregon’s attorney general, in a statement. “These tariffs hit every corner of our lives — from the checkout line to the doctor’s office — and we have a responsibility to push back.”Asked about the latest lawsuit, Kush Desai, a White House spokesman, called it a “witch hunt” by Democrats against Mr. Trump. “The Trump administration remains committed to using its full legal authority to confront the distinct national emergencies our country is currently facing,” he said, “both the scourge of illegal migration and fentanyl flows across our border and the exploding annual U.S. goods trade deficit.”The other states in the suit are Arizona, Colorado, Connecticut, Delaware, Maine, Minnesota, Nevada, New Mexico and Vermont. All of the states have Democratic attorneys general, though Nevada and Vermont have Republican governors.Mr. Trump’s tariffs have shocked and upended the global trade industry. He set a 145 percent tariff on goods from China, 25 percent on Canada, and 10 percent on almost all imports from most other countries.The moves have drawn legal challenges from other entities as well, including two members of the Blackfeet Nation, who filed a federal lawsuit in Montana over the tariffs on Canada, saying they violated tribal treaty rights. Legal groups like the Liberty Justice Center and the New Civil Liberties Alliance have also sued. “I’m happy that Oregon and the other states are joining us in this fight,” said Ilya Somin, a law professor at George Mason University, who is working on the Liberty Justice Center’s lawsuit. More

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      Tesla’s Falling Profit May Pressure Elon Musk to Return to Day Job

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      The carmaker is expected to report a decline in quarterly earnings after Tesla’s brand suffered because of its chief executive’s role in the Trump administration.Tesla is expected to report on Tuesday that its profits fell in the first three months of the year, which could increase the pressure on Elon Musk, the automaker’s chief executive, to curtail his work for President Trump and spend more time managing the company.Wall Street analysts expect Tesla to say its net profit declined slightly from $1.1 billion in the first quarter of 2024.Tesla sales have been slumping because of intense competition from Chinese carmakers like BYD, a lack of new models and Mr. Musk’s support of far-right causes, which has turned away some liberals and centrists from buying Tesla vehicles.Tesla remains the most valuable automaker in the world as measured by its stock price, but its shares have lost about half their value since mid-December as investors have grown more pessimistic about the company’s prospects and concerned about Mr. Musk’s role in the Trump administration.Tesla has steadily lost market share to Chinese carmakers and more established automakers, like General Motors, Volkswagen and Hyundai, that have been offering a growing selection of electric vehicles.Mr. Musk’s company once hoped to sell 20 million vehicles a year by the end of the decade, twice as many as Toyota. But sales have been sliding after climbing to 1.8 million in 2023. Last year, the company sold 1.7 million cars, and its global sales fell 13 percent in the first quarter of 2025 from a year earlier.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      In Trump’s America, There Are No Rules, Only Access

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      Daniel JurmanOne of the most dramatic policy reversals in U.S. economic history happened this month. In the span of just a few days, President Trump announced sweeping tariff increases, panicking global markets, and then partially backed down — all without meaningful consultation with Congress or much evidence his administration used a rational process to arrive at the numbers.Economists, who don’t often agree on much, greeted the plan with near unanimous criticism and a fair degree of derision. Few if any political analysts could articulate a coherent rationale for why threatening to launch a trade war on most nations on earth would make strategic sense.Yet in a way it does, because the real story may not be about trade. Looked at in a different way, it’s about power.In principle, it is not up to the president to decide unilaterally whether to impose tariffs, or on which countries to impose them. The Commerce Clause of the U.S. Constitution clearly vests this authority in Congress. However, Mr. Trump made use of his powers to restrict trade under the International Emergency Economic Powers Act, which allows the president to regulate trade during economic emergencies. The president effectively declared that the executive branch could bypass Congress’s constitutional authority.Financial markets seemed to grasp this. Unlike past global crises, this episode did not send investors fleeing into the dollar’s safety. Quite the opposite: The dollar dropped sharply when the tariffs were announced and continued to fall even after the administration reversed course. This suggests that investors are anxious about much more than just the economic damage from protectionist policies. They’re worried about the United States no longer being a safe place to hold their assets. They have good reason to be concerned.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More